News Briefs

Boot Barn Holdings reported an upbeat first quarter during which it exceeded the high end of its guidance across every metric.

The lifestyle retailer of western and work-related footwear, apparel and accessories for men, women and children reported that its net income rose to $38.9 million, or $1.26 earnings per share, for the quarter ended June 29, up from $34.3 million, or $1.13 per diluted share in the year-ago quarter.

Net sales rose 10.3% to $423.4 million from $383.7 million. Same-store sales increased 1.4%, with an increase of 0.8% in retail store same store sales and an increase of 6.7% in e-commerce same store sales.

“The sequential improvement we have seen in consolidated same store sales growth not only continued into the first quarter but grew consistently from month to month within the quarter itself,” stated Jim Conroy, president and CEO, Boot Barn. “We are encouraged by the building sales momentum we have seen, particularly while maintaining our low promotional posture.”

Boot Barn opened 11 stores during the quarter, bringing its total store count to 411 locations in 46 states. It expects to open 60 new stores for the year.

The company raised its full-year outlook. It now expects total sales for fiscal 2025 between $1.816 billion to $1.850 billion, representing growth of 8.9% to 11% over the prior year. This is up from its previous guidance of total sales for the year of $1.766 billion to $1.800 billion, representing growth of 5.9% to 8% over the prior year.

“Looking forward, despite the potential macroeconomic challenges, we remain steadfast in maintaining our focus on our strategic initiatives and feel that we are well-positioned for long-term success,” Conroy said.

Uniqlo is buying part of the building housing its New York City flagship on Fifth Avenue.

Vornado Realty Trust said that  its 52%-owned retail joint venture has entered into an agreement to sell the Japanese clothing giant a portion of its U.S. flagship store at 666 Fifth Ave. in Midtown Manhattan that is owned by the joint venture for $350 million.

The joint venture owns the fee condominium interest in 17,295 sq. ft. (with 6,477 sq. ft. at grade level) of Uniqlo’s 90,732-sq.-ft.store. In conjunction with the closing, the pass-through leases between the office condominium owner and the retail joint venture will be terminated.

The joint venture will continue to own 23,832 sq. ft. of retail space (with 7,416 sq. ft. at grade level) at the site, consisting of the Abercrombie & Fitch and Tissot stores.

All of the estimated $340 million of net proceeds from the sale are expected to be used to partially repay Vornado’s $390 million of preferred equity on the asset.

The recent slowing of consumer store traffic is creating challenges for the food-away-from-home indsdustry — but for some industry segments more than others.

The total restaurant category — including full-service and limited-service restaurants — is projected to grow 0.5% in 2024 on top of 0.8% last year, according to the International Foodservice Manufacturers Association’s latest 2024 and 2025 Food Away-From-Home Industry and Segment Projections. 

Quick-service restaurants, which have performed significantly better in recent years than other segments overall, are projected to grow 0.7%. The fast casual segment shows bullish growth of 1.3% percent, a positive adjustment compared to the February projection of 0.9%.

IFMA also revised its projection for casual dining to flat growth, compared to 0.5% in February, with the change reflecting the consumer trade down to lower cost occasions, the group explained. Midscale restaurants are the only major restaurant segment where IFMA projects a decline of 0.7%.

On-Site Segment

Collectively, on-site segments in 2024 are projected to grow 2%, largely because their recovery from 2020 was slower than that of restaurants. The college & university and lodging segments are expected to lead on-site growth at 2.0% and 2.8%, respectively. 

The business and industry segment continues its slow recovery, although overall volume is still well below pre-pandemic levels.

IFMA has revised its overall 2024 price inflation rates down from 5.0% in February to 3.8%, reflecting a slowdown in costs of goods sold by FAFH operators.

The IFMA forecast models were created in conjunction with Datassential, a leading foodservice research firm, and validated by operators from the five IFMA Foodservice Leadership Councils.

Walmart’s dominance in grocery continues to grow. 

According to data from Numerator, the retail giant captured 21.4% of grocery dollar share during the past 12 months (7/1/2023 to 6/30/2024). That’s up from 20.8% in the year-ago period. 

Kroger was a distant second, capturing 8.9% of dollar share for the period, down from 9.2% in 2023.

Numerator’s list of the top five grocery retailers by dollar share is below. (Numerator’s new grocery market share view now includes all FMCG (fast-moving consumer goods), specialty, and e-commerce retailers and looks at all grocery sectors except alcohol.

Japanese retailer Daiso is expanding its footprint in the United States with three new openings this week.

The chain, which sells household goods, stationery, beauty products and more, will open new locations in Beaumont, Texas, Van Nuys, Calif. and Westminster Calif. on Saturday, Aug. 10.

The new store in Beaumont is an 8,000-sq.-ft location at Dowlen Towne Center, while the Southern California locations in Van Nuys at Mid Valley Marketplace and Westminster at Westminster Center will stand at 6,319-sq.-ft. and 5,200-sq.-ft. respectively.

Daiso first entered the U.S. in 2005, and now operates 141 stores in eight states. The chain said that additional openings in new states are planned for the remainder of the year.

"We are thrilled to open our store at Westminster Center, Dowlen Towne Center and Westminster Center," said Jack Williams, chief retail operations officer for Daiso USA. "This achievement reflects the dedication and support of our customers who have embraced Daiso's unique concept and diverse product range.”

[READ MORE: Uniqlo to expand in Canada — here are the locations]

At all three new Daiso locations, on both Saturday, Aug. 10 and Sunday, Aug. 11, the first 100 customers to shop at each location and make a minimum purchase of $30 will receive an exclusive goodie bag.

Walgreens Boots Alliance continues to reduce its stake in Cencora.

The pharmacy retailer said it sold shares in the drug distributor, formerly known as AmerisourceBergen, for proceeds of about $1.1 billion. With the transaction, Walgreens’ stake in Cencora has decreased to about 10% from approximately 12%.

The pharmacy retailer said that proceeds from the share sale will be used primarily for debt pay down and general corporate purposes as its continues to build out a more capital-efficient health services strategy rooted in its retail pharmacy footprint.

Walgreens noted that the sale has no impact to the long-term partnership between the two companies. Ornella Barra, COO of Walgreens, will continue to serve on Cencora’s board.

Walgreens has been steadily reducing its stake in Cencora. In May, the company sold $400 million worth of shares, after lowering it from 15% earlier in the year.

The latest sale comes as Walgreens is working on a strategy to turnaround its U.S. business. In June, the company said it was finalizing a "significant multiyear footprint optimization program" to close certain underperforming U.S. stores.